Microsoft Cuts Price of Surface RT Tablet by Up to 30% - Wall Street Journal

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Microsoft Corp. has cut the price of its Surface RT tablet by $150, or as much as 30%, as even some Microsoft partners have called the device a sales laggard.
The software company's websites on Sunday began showing a price of $349 for the least-expensive model of the tablet, without a cover that doubles as a keyboard for the device. That model, which launched last fall, previously cost $499 without the cover-keyboard combination.
Microsoft also cut the price on the Surface RT model with twice as much memory to $449 from $599. That version, with a type of cover-keyboard combination, now costs $549, down from $699.
Websites of Best Buy Co. and Staples Inc. also list the discounted prices for the devices.
"We've been seeing great success with pricing and cover promotions over the past several months on Surface RT in the U.S. and other markets," a Microsoft spokesman said. "People who buy Surface love Surface, and we're excited about all those additional people out sharing their excitement for Surface with other people."
Technology-news website the Verge earlier reported Microsoft was likely to start reducing prices on the Surface RT.
The Surface RT has been a disappointment to some people at companies involved with the device. Those people have said sales of the Surface RT haven't lived up to hopes, and that Microsoft didn't do enough to clarify the reasons people should choose the RT version of Windows, which doesn't run older Windows-compatible software programs, such as iTunes or Quicken financial software. The costlier Surface Pro is compatible with those programs.
The chief executive of Nvidia Corp., which makes the computer makes chips for the Surface RT, said in March that sales of Windows RT devices had been "disappointing" so far. Windows RT devices are powered by the same type of battery-conserving computer chip that is in the guts of smartphones and devices like the Apple iPad.
Microsoft has tried discounts on Surface RT before. More than a month ago, Microsoft started offering people who bought a Surface RT a free cover that doubles as the device's keyboard. The covers typically cost $119 or $129 each.
It isn't uncommon for companies to offer discounts on consumer-electronic devices, particularly to clear out inventory before new models go on sale. Microsoft hasn't announced new versions of the Surface.
At a conference last week, company executives showed a slide that indicated updates were coming to Surface RT and to the more powerful version, Surface Pro.
The Wall Street Journal also reported in April that Microsoft is working on a smaller version of the Surface, on the heels of popular 7-inch to 8-inch tablet computers like Apple's iPad Mini and the Nexus 7 from Google Inc.
Corrections & Amplifications
An earlier version of this article reported incorrectly that Microsoft cut the price on the Surface RT model with twice as much memory as the least expensive version to $499 from $599.
Write to Shira Ovide at [email protected]
A version of this article appeared July 15, 2013, on page B3 in the U.S. edition of The Wall Street Journal, with the headline: Microsoft Cuts Price of Its Surface RT Tablet by Up to 30%.

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